Connecticut Sales Tax on Manufacturing and Machinery Connecticut: Sales Tax Handbook


Are Manufacturing and Machinery subject to sales tax?

While Connecticut's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of manufacturing and machinery in Connecticut, including machinery, raw materials and utilities & fuel. To learn more, see a full list of taxable and tax-exempt items in Connecticut.

Sales of machinery are exempt from the sales tax in Connecticut.

Raw Materials
In the state of Connecticut, the exemption applies specifically to any materials which become any sort of component or ingredient of the completed manufactured property or are utilized directly in any industrial plant in the actual fabrication of any finished products which are intended to be sold.

Utilities & Fuel
In the state of Connecticut, the gas, electricity and heating fuel is required to be used in metered premises and 75% of gas electricity or fuel, or 75% of premises, and must be used for manufacturing.

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